Government Issues Tax Regulations In Operational Cooperation

Tax (Photo: dock. Antara)

JAKARTA - The government has issued Minister of Finance Regulation (PMK) Number 79 of 2024 concerning Tax Treatment in Operational Cooperation. The PMK was officially promulgated on October 18, 2024 and took effect on the same date.

Director of Counseling, Services, and Public Relations Dwi Astuti explained that the preparation of PMK was motivated by the absence of arrangements regarding tax treatment for the form of joint arrangements in the form of Operational Cooperation (KSO) in one comprehensive regulatory provision.

Meanwhile, tax regulations regarding KSO are spread across various legal products, including Government Regulation of the Republic of Indonesia number 44 of 2022 concerning the application of value added taxes for goods and services and sales taxes on luxury goods and regulations of the director general of taxes number Per - PER-04 / PJ / 2020 concerning technical instructions for the implementation of the administration of the taxpayer's main number, electronic certificate, and the inauguration of taxable entrepreneurs.

Dwi explained that this PMK was issued as an effort to provide legal certainty, ease of administration, and simplicity in the implementation of the rights and fulfillment of the obligation to add value tax or value added tax and sales tax on luxury goods as well as income tax on operating cooperation.

According to PMK's provisions, KSO must register to obtain NPWP as a corporate taxpayer in terms of a KSO cooperation agreement or the implementation of cooperation meets the following criteria:

1. KSO submits goods and/or services; 2. KSO accepts or earns income; and/or3. KSO spends money or pays income to other parties, on behalf of KSO.

In addition, KSO is also obliged to report its efforts to be confirmed as a Taxable Entrepreneur in terms of:

1. has exceeded the limits of small entrepreneurs; and/or 2. one or more members have been confirmed as Taxable Entrepreneurs.

In the event that the KSO cooperation agreement or the implementation of the cooperation does not meet the above criteria, KSO is not obliged to register to obtain NPWP and is also not obliged to report its business to be confirmed as a taxable entrepreneur.

According to Dwi, the tax obligation on KSO was carried out by each KSO member. In addition, he appealed to entrepreneurs who are members of KSO to follow this PMK.

"We are ready to help provide an understanding of the provisions in the PMK 79/2024," he said in his statement, Wednesday, November 6.